Thursday, 29 August 2013 09:08

European pellet consumption expected to triple by 2020

The European Union recently published its annual biofuels report for 2013 with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. The report reveals that the EU is the world’s largest wood pellets market, with a consumption of about 14.3 MMT of pellets in 2012.

Driven by the EC mandates and Member State incentives, the demand is expected to expand further to about 17 MMT in 2014.

Consumption forecasts for 2020 range from 35 MMT for Western Europe (Pöyry) to 50 – 80 MMT for the total EU (AEBIOM). Future consumption will however, depend on a range of market and policy factors.

Wood Pellets (1,000 MT)
Calendar Year200620072008200920102011201220132014

Beginning Stocks

5001677711244620999777877907
Production3,5205,7826,2946,6699,2419,62010,00010,15010,300
Imports8009001,2501,7712,6103,2264,49060007000
Exports50505064726890120160
Consumption4,6036,0287,0219,00011,40013,00014,30016,00017,100
Ending Stocks1677711,244620999777877907947
Production Capacity
Number of Plants   499 670   
Capacity6,6438,58311,28313,69414,84515,50016,00016,20016,400
Capacity Use (%)53.0%67.4%55.8%48.7%62.2%62.1%62.5%62.7%62.8%

                                                                                                                                        

Germany and Sweden are the largest pellets producers in the EU. In 2011, Swedish production fell by about 300,000 MT. The production cut has been partly replaced by competitive imports from the Baltic Region and Russia. During 2010, 2011 and 2012, Swedish imports have been increasing rapidly, mainly to the large - scale users.

Wood Pellets (1,000 MT)
Calendar Year2007200820092010201120122013

Germany

1,1001,4601,6001,7501,8802,0002,000

Sweden

1,3601,5801,5801,6501,3401,3401,350

Austria

700625695850940890950
Portugal--400550650650650
France190240350350550600600
Italy600700550600470600600
Poland329378400410410410410
Total5,7826,2946,6699,2419,62010,00010,150

                                                                                                                                                  

In the other major producing EU Member States, production is expected to remain stagnant or increase only marginally. The weak investment climate and the limited availability of feedstock supplies are constraining further capacity and production growth. The major raw material for pellets has traditionally been sawdust and byproducts from sawmills.

With the increasing competition for the sawdust resources, a broader sustainable raw material basis is becoming necessary. There is an increased interest in forest residues, wood waste and agricultural residues.

In Central Europe some expansion is anticipated, mainly supplying the residential heating market in that region. Capacity growth for supplying the demand in northwestern Europe will however not be sufficient. Overall, EU wood pellet production is not expected to be able to keep up with the domestic demand.

source: ihb.de

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